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California RPS Targets and the Energy
Commission’s Role in
Achieving Success


 Pam Doughman, Ph.D.
 Technical Director
 Renewable Energy Office
 California Energy Commission

 May 6, 2010




                                        1
California’s Renewables Portfolio Standard


  RPS signed into law in 2002 assigning roles to
   Energy Commission, CPUC, and requiring retail
   sellers to procure 20% renewable energy by 2010.
  Publicly owned utilities set their own RPS goals
   recognizing the intent of the legislature to attain a
   target of 20% of California retail sales of electricity
   from renewable energy by 2010.
  Governor Schwarzenegger’s Executive Orders set
   further goal of 33% renewable energy by 2020.


   RPS procurement compliance is measured in terms of
        electricity delivered, not signed contracts.
                                                             2
California’s Renewable Energy Goals

                                            120,000
  Estimated Statewide Renewables GWh/year




                                                                                                     33% by 2020
                                            100,000
           (excluding Large Hydro)




                                             80,000

                                                                                                 20% by 2012*
                                             60,000
                                                                                  20% by 2010                   33% by 2020 if
                                                                                                                AB 32 Scoping
                                             40,000                                                             Plan goals met



                                             20,000
                                                                                                    2008 10.6% Renewables
                                                                           2002 11% Renewables
                                                                               (RPS begins)

                                                 -
                                                      1983   1988   1993   1998      2003        2008       2013        2018

                                                                                   Year

 20% by 2010 and 33% by 2020 goals based on retail sales.
 2002 11% Renewables and 2008 10.6% Renewables based on generation.
 *Report assuming 20% by 2012: www.energy.ca.gov/2009publications/CEC-200-2009-011/CEC-200-2009-011.PDF
                                                                                                                                 3
Energy Commission Work Related to
    Renewable Energy
   All four divisions of the Energy Commission work on renewable energy.
     – Siting of thermal power plants 50 MW and larger and transmission
         planning for renewable energy.
     – Policy development and implementation, including eligibility and
         verification for the RPS; incentive programs for existing biomass,
         small-scale wind, and new solar homes; actions to address barriers to
         expansion of renewable energy; and climate change policy related to
         renewable energy.
     – Analysis of changes needed to electricity system to integrate high
         levels of renewable energy.
     – Public Interest Energy Research, including smart grid, storage,
         renewable energy-based secure communities, mitigation of
         environmental impacts of renewable energy.
   Collaboration/cooperation within the Energy Commission and with other
    agencies at the state, local, and federal level.
   Experts and stakeholders help inform our work through advisory
    committees, siting case hearings, public workshops, and support services
    contracts.
                                                                             4
California Energy Commission Large-scale Solar
Thermal Electric Siting Queue: Projects > 50 MW

                 5000


                 4500


                 4000


                 3500


                 3000
 Capacity (MW)




                 2500


                 2000


                 1500


                 1000


                  500


                     0
                            San        San Luis      Kern        Fresno      Imperial       Los       Riverside
                         Bernardino     Obispo                                            Angeles


                 Note: Capacity above refers to all projects within the Application for Certification process per county classified as Approved, Under-
                 Review, Pre-Review, and/or Announced.
                 Source: http://www.energy.ca.gov/siting/solar/index.html

                                                                                                                                                          5
Improving Processes for Licensing
 Renewable Projects (E.O. S-14-08)

   “To implement and track the progress of the Executive Order, the California
    Energy Commission and the Department of Fish and Game (DFG) signed a
    Memorandum of Understanding formalizing a Renewable Energy Action Team
    (REAT).”
   “… the Energy Commission, DFG, U.S. Fish and Wildlife Service, and the U.S.
    Bureau of Land Management signed another Memorandum of Understanding
    to establish a coordinated approach with our federal partners in the expedited
    permitting process…”
   “ … the Energy Commission and DFG will identify renewable energy
    development areas and develop a best management practices manual with the
    goal of reducing the application time in half for specific renewable projects 50
    MW and greater proposed in the designated renewable energy development
    areas.”
   “To initiate Natural Communities Conservation Plans (NCCPs) … REAT will
    begin the Desert Renewable Energy Conservation Plan for the Mojave and
    Colorado Desert regions… This should also help reduce the time and
    uncertainty normally associated with licensing new renewable projects.”
Source: http://www.energy.ca.gov/33by2020/index.html

                                                                                  6
Renewable Energy Program Funding
2002 - 2011
               2002-2006 Annual Allocation: $135 million*

               2007 Annual Allocation: $145.8 million*

               2008-2011 Annual Allocation: $72 million*                                                                                $75.1
                                                                                                                              $69.5


                                                                   $56.9
                                                         $54.7




                                                $35.8

        $27.0


                  $14.6 $14.4


                                                                                        $2.7     $1.4      $0.7                                   $0.0**

       Existing Renewable                           Emerging                                Consumer                          New Renewable
       Facilities                                   Renewables                              Education                         Facilities
 *The total amount collected each year is adjusted annually at a rate equal to the lesser of the annual growth in electric commodity sales or inflation,
 as defined by the gross domestic product deflator.
 **Projected 2008-2011 annual allocation would have been approximately $77.9 million.                                                                      7
IOU, ESP, and CCA RPS Implementation

         CEC ROLE                               CPUC ROLE
   Certify renewable facilities as   Oversight of IOU procurement:
    eligible for the RPS
                                         Approve procurement plans
   Design and implement an
                                         Set baselines and targets
    accounting system to track
    and verify RPS compliance            Develop market price referent
   Distribute Supplemental              Develop least-cost-best-fit
    Energy Payments (Legislation          process to evaluate bids
    deleted CEC authority to
    award SEPs and transfers             Set rules for flexible compliance
    administrative responsibility        Standardize contract terms
    to CPUC)
                                         Approve/ reject contracts
                                         Ensure RPS competitiveness
                                         Administer above-market funds
                                      Oversight for other “retail sellers”
                                                                              8
CEC RPS Certification

               Facilities certified as RPS eligible represent
                    more than 10,260 MW of capacity.*
  Biofuels (gas & liquid)                     374                                                CEC ROLE
                                                                                         Certify renewable facilities
            Biomass (solid)                         769                                   as eligible for the RPS
                                                                                         Design and implement an
             Conduit Hydro                   179                                          accounting system to track and
                                                                                          verify RPS compliance
                 Geothermal                                           2,472              Distribute Supplemental Energy
                                                                                          Payments (Legislation deleted
       Incremental Hydro                 0                                                CEC authority to award SEPs
                                                                                          and transfers administrative
                                                                                          responsibility to CPUC)
        MSW Combustion                   22
                               PV        18
                 Small Hydro                         998
              Solar Thermal                   453
                           Wind                                                                 5,254

                                     0             1000    2000        3000   4000       5000       6000
                                                                MEGAWATTS
  *Includes only the percent of capacity certified as RPS eligible.
  Data as of April 2010.
                                                                                                                           9
What is the Western Renewable Energy
Generation Information System?

           WREGIS tracks renewable generation to help ensure the
           credibility of the "green" value of renewable electricity
     WREGIS is a voluntary, independent renewable
      energy registry and tracking system for the                       CEC ROLE
      Western Interconnection transmission area                Certify renewable facilities as
                                                                eligible for the RPS
       – Uses verifiable renewable energy generation           Design and implement an
                                                                accounting system to track
         data                                                   and verify RPS compliance

       – Creates renewable energy certificates                 Distribute Supplemental Energy
                                                                Payments (Legislation deleted
         (WREGIS certificates)                                  CEC authority to award SEPs
                                                                and transfers administrative
       – Accounts for transactions involving certificates       responsibility to CPUC)

       – Supports voluntary and regulatory markets for
         certificates
  WREGIS was launched in June 2007
 Retail sellers and renewable facilities participating in California’s RPS are
     required to register with and use WREGIS. POUs can opt to use WREGIS
     to track their RPS energy.
RESULTS as of April 2010:
        More than 330 companies are registered WREGIS Account Holders.
                                                                                                  10
Attribute Tracking Systems




  KEY
    ERCOT

    M-RETS

    Michigan Renewable Energy
    Certification System
    (in development)

    NAR: North American
    Renewables Registry

    NEPOOL-GIS

    North Carolina Renewable
    Tracking System
    (in development)
                                ASD
    NYSERDA (in development)    FAS
                                FDA
    PJM-GATS
                                FA
    WREGIS
                                      11
POUs’ RPS Targets and 2008 Procurement

    POUs report past and projected procurement of renewable energy
    to the Energy Commission.

                      2008           Target                          2008                      Target
  Anaheim              6.3%        20% 2015                Redding 27.7%                     20% 2017
  Burbank              1.3%        33% 2020                Riverside 9.3%                    33% 2020
  Glendale            13.9%        20% 2017                Roseville 18.3%                   20% 2017
  Imperial             7.9%        30% 2020                SMUD      19.7%                   33% 2020
  LADWP                7.2%        35% 2020                SVP       27.8%                   20% ongoing
  Modesto             11.5%        20% 2017                Turlock    4.4%                   20% 2017
  NCPA                38.0%            va ri ous           Vernon     1.7%                   20% 2017
  Pasadena            13.2%        20% 2017
  Sources: California Energy Commission, Staff Assessment of POU Resource Adequacy and Electricity Resource
  Plans, presentation by Jim Woodward, August 6, 2009.
  SMUD data: SMUD website, Community and Environment, www.smud.org/en/community-environment/climate-
  change/pages/index.aspx

                                                                                                              12
2009 Integrated Energy Policy Report

   Major challenges continue to exist for renewable development
        and moving the state to 33% renewables by 2020.

     Difficulty integrating large amounts of renewable energy into the
      electricity system.
     Uncertainty on timeline for meeting RPS goals.
     Environmental concerns with development of renewable facilities
      and associated transmission.
     Difficulty securing project financing.
     Delays and duplication in siting processes. Time and expense of
      new transmission development.
     Cost of renewable energy in fluctuating energy market.
     Maintaining state’s existing baseline of renewable facilities.

   Source: 2009 Integrated Energy Policy Report, Commission Final Report, December 2009,
   http://www.energy.ca.gov/2009_energypolicy/index.html
                                                                                           13
2009 IEPR Commission Final Report:
Key Recommendations for Renewable Energy

   Continue the cooperative work among state agencies to implement a
    33% renewable policy that applies to all load serving entities and retail
    providers.
   Reduce regulatory uncertainty with legislation to codify the 33%
    renewable target.
   Implement measures to accelerate permitting of new renewables and
    associated transmission.
   Address barriers to the expansion of biopower, including regulatory
    hurdles and project financing, and encourage R&D to reduce costs for
    biomass conversion, biopower technologies, and environmental
    controls.
   Identify solutions to integrate increasing levels of energy efficiency,
    smart grid infrastructure, and renewable energy while avoiding surplus
    generation.

     Source: 2009 Integrated Energy Policy Report, Commission Final Report, December 2009,
     http://www.energy.ca.gov/2009_energypolicy/index.html
                                                                                             14
Additional Information

 California Energy Commission Web sites:
    Renewable Energy Program
     www.energy.ca.gov/renewables/index.html
    Renewables Portfolio Standard
     www.energy.ca.gov/portfolio/index.html
    Integrated Energy Policy Reports
     http://www.energy.ca.gov/2009_energypolicy/index.html
    Proposed Renewable Energy Projects for California
     http://www.energy.ca.gov/33by2020/documents/index.html
    GoSolar California
     www.gosolarcalifornia.org
 California Public Utilities Commission Web site:
 Renewables Portfolio Standard
 www.cpuc.ca.gov/PUC/energy/electric/renewableenergy/index.htm

 Air Resources Board Web site:
 ARB’s Climate Change Program
 www.arb.ca.gov/cc/cc.htm


                                        15
Additional Slides




                    16
California ARB GHG Reduction Plan
Sees Key Role for Renewable Energy
          ARB 32 Scoping Plan
  Recommended Actions for Electricity Sector
                                               GHG
               MEASURE                     REDUCTIONS
                                            (MMTCO2E)    In November 2008, Gov. Schwarzenegger’s
 Energy Efficiency                            15.2
                                                          Executive Order S 14 08 raised California
 (32,000 GWh of Reduced Demand)                           renewable energy goals to 33% by 2020.
     Increased Utility Energy

 
      Efficiency Programs
      More Stringent Building &
                                                         In September 2009, Executive Order
      Appliance Standards                                 S 21 09 directed ARB, under its AB 32
     Additional Efficiency and                           authority, to work with the California Public
      Conservation Programs                               Utilities Commission, California
 Combined Heat and Power                      6.7         Independent System Operator, and Energy
 Increase Combined Heat and Power
 Use by 30,000 GWh
                                                          Commission to adopt regulations by
 Renewables Portfolio Standard                21.3        July 31, 2010, consistent with the 33%
 Achieve a 33% renewables mix by                          renewable energy target established in
 2020                                                     Executive Order S-14-08.
 Million Solar Roofs                          2.1
 (Including California Solar Initiative,
 New Solar Homes Partnership, and                        RPS target of 33% is expected to provide
 solar programs of publicly owned                         15.2% of total GHG reductions needed to
 utilities)
                                                          meet AB 32 goal of 1990 emissions levels
        Target of 3000 MW Total
         Installation by 2020                             by 2020.
 TOTAL                                        45.3
                                                                                                     17
IOU, ESP, and CCA RPS Eligible Technologies

     Biodiesel                       Landfill gas
     Biomass                         Municipal solid waste (limited)
     Conduit hydroelectric           Ocean wave, ocean thermal,
                                        tidal current
     Digester gas
     Fuel cells
                                      Photovoltaic
      using renewable fuels           Small hydroelectric
                                        (30 MW or less)
   Geothermal
   Hydroelectric                   Solar thermal electric
      (incremental generation from  Wind
      efficiency improvements)

      These technologies also provide most of the POU RPS energy.



                                                                     18
California’s Generation Mix in 2008

                    Includes In-State Generation and Estimated Energy Imports


        Natural Gas
          45.7%                                       Nuclear
                                                       14.4%

                                                                                                 Wind
                                                                                                 2.4%

                                                          Renewables
                                                                                Solar
                                                            10.6%               0.2%                            Biomass
                                                                                                                  2.1%
            Large Hydro
                11%                     Coal                          Small Hydro
                                       18.2%                            1.4%




Source: 2008 Net System Power Report, Energy Commission Publication, #CEC-200-2009-010,
http://www.energy.ca.gov/2009publications/CEC-200-2009-010/CEC-200-2009-010.PDF                         Geothermal
Totals may not sum due to rounding.                                                                       4.5%

   For daily renewable energy generation in CA ISO area, see http://www.caiso.com/green/renewrpt/DailyRenewablesWatch.pdf

                                                                                                                        19
IOU RPS Projects: Solar and Wind
Dominate Contracts Signed Since 2002

                            Operational Status for New, Repowered and Re-Started Capacity, by
                                                Technology (minimum MW)


                     8000

                                                                                                                      Not Online
                     7000
                                                                                                                      Online

                     6000
     Capacity (MW)




                     5000


                     4000


                     3000


                     2000


                     1000


                       0
                              wind     biogas    biomass     geothermal      ocean      small hydro   solar thermal       solar
                                                                                                                       photovoltaic




  Source: California Energy Commission, Database of IOU Contracts for Renewable Generation, April 2010
  update, www.energy.ca.gov/portfolio/IOU_CONTRACT_DATABASE.XLS
                                                                                                                                      20
POU RPS Contracts with Target Online Dates of
2009-2015 (MW)

    800
    200




    150




    100




     50




       0
                 Wind              Biogas           Biomass          Geothermal Small Hydro Solar PV
     Source: California Energy Commission, Database of POU Contracts for Renewable Generation, December 2008
     http://www.energy.ca.gov/2008publications/CEC-300-2008-005/index.html                                     21
POUs: About ¼ of California’s Electricity

                                    California’s
                          Publicly Owned Electric Utilities




                                                              22
Summary of CA Renewable Energy Policies


                                                           2010                                     2016                    2020
     Accelerated RPS
      from IEPR / EAP /
  SB 1250 [2006]/107 [2006],                            Renewables                                                        Renewables
   Exec Orders S-14-08 and                           20% of retail sales                                               33% of retail sales
  S-21-09, and EE and CHP                             (~55,000 GWh)                                                 (~78,000 - 102,000 GWh)
   goals from ARB’s AB 32
     (2006) Scoping Plan



                                                                                           3,000 MW of new solar
 California Solar Initiative
                                                                                               (~4,000 GWh1)



                                                20% of RPS from biopower                                        20% of RPS from biopower
                                                    (~11,000 GWh1)                                                  (~20,000 GWh1)
   State Bioenergy Goal
  (Executive Order S-06-06)2
                                           20% biofuels produced in California                              40% biofuels produced in California
       Governor’s GHG
  Reduction Targets (1990
 levels by 2020; 80% below                             Portion of 2020 GHG reduction target allocated to RE is contained in the
    1990 levels by 2050) .                             CA Air Resources Board’s Climate Change Scoping Plan, October 2008.
  Target for 2020 is in state
      law (AB 32, 2006)
                                1Assumes average capacity factors are 15% for solar and 90% for biopower.
                                2 Executive Order S-06-06 can be downloaded at http://gov.ca.gov/index.php?/print-version/executive-order/183/.
                                Note: The roadmap also considered detailed policy guidance as stated in the IEPR.
                                                                                                                                                  23
Electrification & Low-Carbon Generation
Preliminary Research on achieving 2050 GHG goal for California


                 Electricity demand could nearly double between today and 2050
                 Increase in demand driven by largely by electric vehicles
                 Nearly all electricity must be from low-carbon generation by 2050
                                             700,000
    Electric Demand at the Generator (GWh)




                                             600,000
                                                                                                        Transportation

                                             500,000                                                    Petroleum & Agriculture

                                             400,000                                                    Industrial

                                                                                                        Commercial
                                             300,000
                                                                                                        Residential
                                             200,000
                                                                                                        Baseline
                                             100,000

                                                 -
                                                       1990   2000   2010   2020   2030   2040   2050
                                                                            Year
Source: Energy and Environmental Economics, Inc. http://www.climatechange.ca.gov/events/
2009_symposium/presentations/2009-09-09_Wednesday/Track_02/Session_02/Talk3_Session2_308_Wed_Price.pdf
                                                                                                                                  24
State Renewables Portfolio Standards


                                                                                                        VT: (1) RE meets any increase      ME: 30% x 2000
 WA: 15% x 2020*                                                                                                                           New RE: 10% x 2017
                                                                    MN: 25% x 2025                          in retail sales x 2012;
                               MT: 15% x 2015                           (Xcel: 30% x 2020)                (2) 20% RE & CHP x 2017          NH: 23.8% x 2025
OR: 25% x 2025 (large utilities)*                     ND: 10% x 2015                     MI: 10% + 1,100 MW                                 MA: 22.1% x 2020
 5% - 10% x 2025 (smaller utilities)                                                          x 2015*                                        New RE: 15% x 2020
                                                                                                                                            (+1% annually thereafter)
                                                       SD: 10% x 2015       WI: Varies by utility;      NY: 29% x 2015
                                                                             10% x 2015 statewide                                          RI: 16% x 2020
         NV: 25% x 2025*                                                                                                                   CT: 23% x 2020
                                                                           IA: 105 MW         OH: 25% x 2025†
                                       CO: 30% by 2020 (IOUs)                                                                              PA: ~18% x 2021†
                                  10% by 2020 (co-ops & large munis)*
                                                                                     IL: 25% x 2025       WV: 25% x 2025*†                 NJ: 22.5% x 2021
CA: 33% x 2020          UT: 20% by 2025*                 KS: 20% x 2020                                     VA: 15% x 2025*                MD: 20% x 2022
                                                                           MO: 15% x 2021
                                                                                                                                           DE: 20% x 2020*
                 AZ: 15% x 2025
                                                                                               NC: 12.5% x 2021 (IOUs)              DC     DC: 20% x 2020
                                                                                               10% x 2018 (co-ops & munis)
                                 NM: 20% x 2020 (IOUs)
                                        10% x 2020 (co-ops)


                                                   TX: 5,880 MW x 2015

                     HI: 40% x 2030



     State renewable portfolio standard                          Minimum solar or customer-sited requirement                        29 states +
     State renewable portfolio goal                                                                                                 DC have an RPS
     Solar water heating eligible                         *
                                                          †
                                                                 Extra credit for solar or customer-sited renewables
                                                                 Includes non-renewable alternative resources                           (6 states have goals)
 DSIRE: www.dsireusa.org                                                                                                                         April 2010
                                                                                                                                                                  25

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State RPS targets and the CEC role in achieving success [CSTP 2010]

  • 1. California RPS Targets and the Energy Commission’s Role in Achieving Success Pam Doughman, Ph.D. Technical Director Renewable Energy Office California Energy Commission May 6, 2010 1
  • 2. California’s Renewables Portfolio Standard  RPS signed into law in 2002 assigning roles to Energy Commission, CPUC, and requiring retail sellers to procure 20% renewable energy by 2010.  Publicly owned utilities set their own RPS goals recognizing the intent of the legislature to attain a target of 20% of California retail sales of electricity from renewable energy by 2010.  Governor Schwarzenegger’s Executive Orders set further goal of 33% renewable energy by 2020. RPS procurement compliance is measured in terms of electricity delivered, not signed contracts. 2
  • 3. California’s Renewable Energy Goals 120,000 Estimated Statewide Renewables GWh/year 33% by 2020 100,000 (excluding Large Hydro) 80,000 20% by 2012* 60,000 20% by 2010 33% by 2020 if AB 32 Scoping 40,000 Plan goals met 20,000 2008 10.6% Renewables 2002 11% Renewables (RPS begins) - 1983 1988 1993 1998 2003 2008 2013 2018 Year 20% by 2010 and 33% by 2020 goals based on retail sales. 2002 11% Renewables and 2008 10.6% Renewables based on generation. *Report assuming 20% by 2012: www.energy.ca.gov/2009publications/CEC-200-2009-011/CEC-200-2009-011.PDF 3
  • 4. Energy Commission Work Related to Renewable Energy  All four divisions of the Energy Commission work on renewable energy. – Siting of thermal power plants 50 MW and larger and transmission planning for renewable energy. – Policy development and implementation, including eligibility and verification for the RPS; incentive programs for existing biomass, small-scale wind, and new solar homes; actions to address barriers to expansion of renewable energy; and climate change policy related to renewable energy. – Analysis of changes needed to electricity system to integrate high levels of renewable energy. – Public Interest Energy Research, including smart grid, storage, renewable energy-based secure communities, mitigation of environmental impacts of renewable energy.  Collaboration/cooperation within the Energy Commission and with other agencies at the state, local, and federal level.  Experts and stakeholders help inform our work through advisory committees, siting case hearings, public workshops, and support services contracts. 4
  • 5. California Energy Commission Large-scale Solar Thermal Electric Siting Queue: Projects > 50 MW 5000 4500 4000 3500 3000 Capacity (MW) 2500 2000 1500 1000 500 0 San San Luis Kern Fresno Imperial Los Riverside Bernardino Obispo Angeles Note: Capacity above refers to all projects within the Application for Certification process per county classified as Approved, Under- Review, Pre-Review, and/or Announced. Source: http://www.energy.ca.gov/siting/solar/index.html 5
  • 6. Improving Processes for Licensing Renewable Projects (E.O. S-14-08)  “To implement and track the progress of the Executive Order, the California Energy Commission and the Department of Fish and Game (DFG) signed a Memorandum of Understanding formalizing a Renewable Energy Action Team (REAT).”  “… the Energy Commission, DFG, U.S. Fish and Wildlife Service, and the U.S. Bureau of Land Management signed another Memorandum of Understanding to establish a coordinated approach with our federal partners in the expedited permitting process…”  “ … the Energy Commission and DFG will identify renewable energy development areas and develop a best management practices manual with the goal of reducing the application time in half for specific renewable projects 50 MW and greater proposed in the designated renewable energy development areas.”  “To initiate Natural Communities Conservation Plans (NCCPs) … REAT will begin the Desert Renewable Energy Conservation Plan for the Mojave and Colorado Desert regions… This should also help reduce the time and uncertainty normally associated with licensing new renewable projects.” Source: http://www.energy.ca.gov/33by2020/index.html 6
  • 7. Renewable Energy Program Funding 2002 - 2011 2002-2006 Annual Allocation: $135 million* 2007 Annual Allocation: $145.8 million* 2008-2011 Annual Allocation: $72 million* $75.1 $69.5 $56.9 $54.7 $35.8 $27.0 $14.6 $14.4 $2.7 $1.4 $0.7 $0.0** Existing Renewable Emerging Consumer New Renewable Facilities Renewables Education Facilities *The total amount collected each year is adjusted annually at a rate equal to the lesser of the annual growth in electric commodity sales or inflation, as defined by the gross domestic product deflator. **Projected 2008-2011 annual allocation would have been approximately $77.9 million. 7
  • 8. IOU, ESP, and CCA RPS Implementation CEC ROLE CPUC ROLE  Certify renewable facilities as Oversight of IOU procurement: eligible for the RPS  Approve procurement plans  Design and implement an  Set baselines and targets accounting system to track and verify RPS compliance  Develop market price referent  Distribute Supplemental  Develop least-cost-best-fit Energy Payments (Legislation process to evaluate bids deleted CEC authority to award SEPs and transfers  Set rules for flexible compliance administrative responsibility  Standardize contract terms to CPUC)  Approve/ reject contracts  Ensure RPS competitiveness  Administer above-market funds Oversight for other “retail sellers” 8
  • 9. CEC RPS Certification Facilities certified as RPS eligible represent more than 10,260 MW of capacity.* Biofuels (gas & liquid) 374 CEC ROLE  Certify renewable facilities Biomass (solid) 769 as eligible for the RPS  Design and implement an Conduit Hydro 179 accounting system to track and verify RPS compliance Geothermal 2,472  Distribute Supplemental Energy Payments (Legislation deleted Incremental Hydro 0 CEC authority to award SEPs and transfers administrative responsibility to CPUC) MSW Combustion 22 PV 18 Small Hydro 998 Solar Thermal 453 Wind 5,254 0 1000 2000 3000 4000 5000 6000 MEGAWATTS *Includes only the percent of capacity certified as RPS eligible. Data as of April 2010. 9
  • 10. What is the Western Renewable Energy Generation Information System? WREGIS tracks renewable generation to help ensure the credibility of the "green" value of renewable electricity  WREGIS is a voluntary, independent renewable energy registry and tracking system for the CEC ROLE Western Interconnection transmission area  Certify renewable facilities as eligible for the RPS – Uses verifiable renewable energy generation  Design and implement an accounting system to track data and verify RPS compliance – Creates renewable energy certificates  Distribute Supplemental Energy Payments (Legislation deleted (WREGIS certificates) CEC authority to award SEPs and transfers administrative – Accounts for transactions involving certificates responsibility to CPUC) – Supports voluntary and regulatory markets for certificates  WREGIS was launched in June 2007  Retail sellers and renewable facilities participating in California’s RPS are required to register with and use WREGIS. POUs can opt to use WREGIS to track their RPS energy. RESULTS as of April 2010: More than 330 companies are registered WREGIS Account Holders. 10
  • 11. Attribute Tracking Systems KEY ERCOT M-RETS Michigan Renewable Energy Certification System (in development) NAR: North American Renewables Registry NEPOOL-GIS North Carolina Renewable Tracking System (in development) ASD NYSERDA (in development) FAS FDA PJM-GATS FA WREGIS 11
  • 12. POUs’ RPS Targets and 2008 Procurement POUs report past and projected procurement of renewable energy to the Energy Commission. 2008 Target 2008 Target Anaheim 6.3% 20% 2015 Redding 27.7% 20% 2017 Burbank 1.3% 33% 2020 Riverside 9.3% 33% 2020 Glendale 13.9% 20% 2017 Roseville 18.3% 20% 2017 Imperial 7.9% 30% 2020 SMUD 19.7% 33% 2020 LADWP 7.2% 35% 2020 SVP 27.8% 20% ongoing Modesto 11.5% 20% 2017 Turlock 4.4% 20% 2017 NCPA 38.0% va ri ous Vernon 1.7% 20% 2017 Pasadena 13.2% 20% 2017 Sources: California Energy Commission, Staff Assessment of POU Resource Adequacy and Electricity Resource Plans, presentation by Jim Woodward, August 6, 2009. SMUD data: SMUD website, Community and Environment, www.smud.org/en/community-environment/climate- change/pages/index.aspx 12
  • 13. 2009 Integrated Energy Policy Report Major challenges continue to exist for renewable development and moving the state to 33% renewables by 2020.  Difficulty integrating large amounts of renewable energy into the electricity system.  Uncertainty on timeline for meeting RPS goals.  Environmental concerns with development of renewable facilities and associated transmission.  Difficulty securing project financing.  Delays and duplication in siting processes. Time and expense of new transmission development.  Cost of renewable energy in fluctuating energy market.  Maintaining state’s existing baseline of renewable facilities. Source: 2009 Integrated Energy Policy Report, Commission Final Report, December 2009, http://www.energy.ca.gov/2009_energypolicy/index.html 13
  • 14. 2009 IEPR Commission Final Report: Key Recommendations for Renewable Energy  Continue the cooperative work among state agencies to implement a 33% renewable policy that applies to all load serving entities and retail providers.  Reduce regulatory uncertainty with legislation to codify the 33% renewable target.  Implement measures to accelerate permitting of new renewables and associated transmission.  Address barriers to the expansion of biopower, including regulatory hurdles and project financing, and encourage R&D to reduce costs for biomass conversion, biopower technologies, and environmental controls.  Identify solutions to integrate increasing levels of energy efficiency, smart grid infrastructure, and renewable energy while avoiding surplus generation. Source: 2009 Integrated Energy Policy Report, Commission Final Report, December 2009, http://www.energy.ca.gov/2009_energypolicy/index.html 14
  • 15. Additional Information California Energy Commission Web sites:  Renewable Energy Program www.energy.ca.gov/renewables/index.html  Renewables Portfolio Standard www.energy.ca.gov/portfolio/index.html  Integrated Energy Policy Reports http://www.energy.ca.gov/2009_energypolicy/index.html  Proposed Renewable Energy Projects for California http://www.energy.ca.gov/33by2020/documents/index.html  GoSolar California www.gosolarcalifornia.org California Public Utilities Commission Web site: Renewables Portfolio Standard www.cpuc.ca.gov/PUC/energy/electric/renewableenergy/index.htm Air Resources Board Web site: ARB’s Climate Change Program www.arb.ca.gov/cc/cc.htm 15
  • 17. California ARB GHG Reduction Plan Sees Key Role for Renewable Energy ARB 32 Scoping Plan Recommended Actions for Electricity Sector GHG MEASURE REDUCTIONS (MMTCO2E)  In November 2008, Gov. Schwarzenegger’s Energy Efficiency 15.2 Executive Order S 14 08 raised California (32,000 GWh of Reduced Demand) renewable energy goals to 33% by 2020.  Increased Utility Energy  Efficiency Programs More Stringent Building &  In September 2009, Executive Order Appliance Standards S 21 09 directed ARB, under its AB 32  Additional Efficiency and authority, to work with the California Public Conservation Programs Utilities Commission, California Combined Heat and Power 6.7 Independent System Operator, and Energy Increase Combined Heat and Power Use by 30,000 GWh Commission to adopt regulations by Renewables Portfolio Standard 21.3 July 31, 2010, consistent with the 33% Achieve a 33% renewables mix by renewable energy target established in 2020 Executive Order S-14-08. Million Solar Roofs 2.1 (Including California Solar Initiative, New Solar Homes Partnership, and  RPS target of 33% is expected to provide solar programs of publicly owned 15.2% of total GHG reductions needed to utilities) meet AB 32 goal of 1990 emissions levels  Target of 3000 MW Total Installation by 2020 by 2020. TOTAL 45.3 17
  • 18. IOU, ESP, and CCA RPS Eligible Technologies  Biodiesel  Landfill gas  Biomass  Municipal solid waste (limited)  Conduit hydroelectric  Ocean wave, ocean thermal, tidal current  Digester gas  Fuel cells  Photovoltaic using renewable fuels  Small hydroelectric (30 MW or less)  Geothermal  Hydroelectric  Solar thermal electric (incremental generation from  Wind efficiency improvements) These technologies also provide most of the POU RPS energy. 18
  • 19. California’s Generation Mix in 2008 Includes In-State Generation and Estimated Energy Imports Natural Gas 45.7% Nuclear 14.4% Wind 2.4% Renewables Solar 10.6% 0.2% Biomass 2.1% Large Hydro 11% Coal Small Hydro 18.2% 1.4% Source: 2008 Net System Power Report, Energy Commission Publication, #CEC-200-2009-010, http://www.energy.ca.gov/2009publications/CEC-200-2009-010/CEC-200-2009-010.PDF Geothermal Totals may not sum due to rounding. 4.5% For daily renewable energy generation in CA ISO area, see http://www.caiso.com/green/renewrpt/DailyRenewablesWatch.pdf 19
  • 20. IOU RPS Projects: Solar and Wind Dominate Contracts Signed Since 2002 Operational Status for New, Repowered and Re-Started Capacity, by Technology (minimum MW) 8000 Not Online 7000 Online 6000 Capacity (MW) 5000 4000 3000 2000 1000 0 wind biogas biomass geothermal ocean small hydro solar thermal solar photovoltaic Source: California Energy Commission, Database of IOU Contracts for Renewable Generation, April 2010 update, www.energy.ca.gov/portfolio/IOU_CONTRACT_DATABASE.XLS 20
  • 21. POU RPS Contracts with Target Online Dates of 2009-2015 (MW) 800 200 150 100 50 0 Wind Biogas Biomass Geothermal Small Hydro Solar PV Source: California Energy Commission, Database of POU Contracts for Renewable Generation, December 2008 http://www.energy.ca.gov/2008publications/CEC-300-2008-005/index.html 21
  • 22. POUs: About ¼ of California’s Electricity California’s Publicly Owned Electric Utilities 22
  • 23. Summary of CA Renewable Energy Policies 2010 2016 2020 Accelerated RPS from IEPR / EAP / SB 1250 [2006]/107 [2006], Renewables Renewables Exec Orders S-14-08 and 20% of retail sales 33% of retail sales S-21-09, and EE and CHP (~55,000 GWh) (~78,000 - 102,000 GWh) goals from ARB’s AB 32 (2006) Scoping Plan 3,000 MW of new solar California Solar Initiative (~4,000 GWh1) 20% of RPS from biopower 20% of RPS from biopower (~11,000 GWh1) (~20,000 GWh1) State Bioenergy Goal (Executive Order S-06-06)2 20% biofuels produced in California 40% biofuels produced in California Governor’s GHG Reduction Targets (1990 levels by 2020; 80% below Portion of 2020 GHG reduction target allocated to RE is contained in the 1990 levels by 2050) . CA Air Resources Board’s Climate Change Scoping Plan, October 2008. Target for 2020 is in state law (AB 32, 2006) 1Assumes average capacity factors are 15% for solar and 90% for biopower. 2 Executive Order S-06-06 can be downloaded at http://gov.ca.gov/index.php?/print-version/executive-order/183/. Note: The roadmap also considered detailed policy guidance as stated in the IEPR. 23
  • 24. Electrification & Low-Carbon Generation Preliminary Research on achieving 2050 GHG goal for California  Electricity demand could nearly double between today and 2050  Increase in demand driven by largely by electric vehicles  Nearly all electricity must be from low-carbon generation by 2050 700,000 Electric Demand at the Generator (GWh) 600,000 Transportation 500,000 Petroleum & Agriculture 400,000 Industrial Commercial 300,000 Residential 200,000 Baseline 100,000 - 1990 2000 2010 2020 2030 2040 2050 Year Source: Energy and Environmental Economics, Inc. http://www.climatechange.ca.gov/events/ 2009_symposium/presentations/2009-09-09_Wednesday/Track_02/Session_02/Talk3_Session2_308_Wed_Price.pdf 24
  • 25. State Renewables Portfolio Standards VT: (1) RE meets any increase ME: 30% x 2000 WA: 15% x 2020* New RE: 10% x 2017 MN: 25% x 2025 in retail sales x 2012; MT: 15% x 2015 (Xcel: 30% x 2020) (2) 20% RE & CHP x 2017 NH: 23.8% x 2025 OR: 25% x 2025 (large utilities)* ND: 10% x 2015 MI: 10% + 1,100 MW MA: 22.1% x 2020 5% - 10% x 2025 (smaller utilities) x 2015* New RE: 15% x 2020 (+1% annually thereafter) SD: 10% x 2015 WI: Varies by utility; NY: 29% x 2015 10% x 2015 statewide RI: 16% x 2020 NV: 25% x 2025* CT: 23% x 2020 IA: 105 MW OH: 25% x 2025† CO: 30% by 2020 (IOUs) PA: ~18% x 2021† 10% by 2020 (co-ops & large munis)* IL: 25% x 2025 WV: 25% x 2025*† NJ: 22.5% x 2021 CA: 33% x 2020 UT: 20% by 2025* KS: 20% x 2020 VA: 15% x 2025* MD: 20% x 2022 MO: 15% x 2021 DE: 20% x 2020* AZ: 15% x 2025 NC: 12.5% x 2021 (IOUs) DC DC: 20% x 2020 10% x 2018 (co-ops & munis) NM: 20% x 2020 (IOUs) 10% x 2020 (co-ops) TX: 5,880 MW x 2015 HI: 40% x 2030 State renewable portfolio standard Minimum solar or customer-sited requirement 29 states + State renewable portfolio goal DC have an RPS Solar water heating eligible * † Extra credit for solar or customer-sited renewables Includes non-renewable alternative resources (6 states have goals) DSIRE: www.dsireusa.org April 2010 25